Comtech says 2Q profit climbed, cuts 2010 forecast
Comtech Telecommunications Corp. said Wednesday that its fiscal second-quarter profit climbed, but the communications equipment maker reported revenue below analyst expectations and cut its first-quarter guidance.
Comtech shares sank $4.68, or 14.2 percent, in after-hours trading, having finished regular trading up 36 cents at $32.93.
For the quarter that ended Jan. 31, Comtech earned $16.3 million, or 51 cents per share, compared with $12.1 million, or 46 cents per share, in the year-ago quarter.
The profit beat estimates of analysts polled by Thomson Reuters, who expected 47 cents per share.
But while Comtech's revenue rose 19 percent to $171.1 million it missed analyst estimates for $184.6 million.
Comtech also cut its fiscal 2010 outlook, saying production issues at a third-party computer and accessory supplier led to a slowdown in product shipments to the U.S. Army.
Comtech said that $90 million to $100 million worth of backlogged orders that it had thought would ship during the current fiscal year will likely end up shipping in fiscal 2011.
Because of this, the company now expects a fiscal 2010 profit of $1.85 to $1.95 per share on $740 million to $760 million in revenue. Comtech had said in December that it expected $2.20 to $2.30 per share on $840 million to $860 million in revenue.
Analysts have been expecting a profit of $2.26 per share on $839.5 million in revenue.